Computerized financial management applications (FMA) are widely used by businesses for tracking, analysis, planning, implementation, and control of business transactions, financial data reporting, and management decision making including maintaining bank accounts, developing financial statements, performing cash flow and financial analysis, etc.
Electronic tax filing (or e-filing) is a process where tax documents are submitted to government agency (e.g., Internal Revenue Service (IRS), state taxation agency, etc.) through the internet or direct connection, usually without the need to submit any paper documents. Electronic payment (or e-payment) refers to the computer-based systems used to perform financial transactions electronically. Government agencies typically accept e-payment for tax liabilities. E-payment may also be referred to as electronic fund transfer (EFT).
When a user of a FMA makes payroll tax payments or files payroll tax forms directly on government agency's website, the user does not have the benefit of payroll information (e.g., liabilities owed, account number, employee information, etc.) maintained within the FMA. In addition, once the payment or filing is complete, the user has to manually update the information in the FMA in order to track the fact the completion of payroll tax payments or filings.